European Stocks Edge Higher on UK Housing Boost

European stock markets inched higher on Monday as a surge in UK housebuilders lifted regional sentiment. The STOXX 600 rose 0.3% to 640.43 points by 0725 GMT, driven by gains in the UK's housing sector.

The British government's confirmation of an equity loan programme for first-time homebuyers next month boosted shares in Persimmon, Barratt Redrow, Taylor Wimpey, and Vistry, which jumped between 13% and 17%.

However, wider market gains were limited by rising oil prices and elevated bond yields. Brent crude climbed over 3%, amid Middle East tensions, while investors await remarks from European Central Bank President Christine Lagarde and Bank of England Deputy Governor Dave Ramsden later in the day.